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Refurbishing the Nation

Gathering the evidence

The National Refurbishment Centre is a joint initiative between BRE, the Energy Saving Trust, and partners to provide evidence and knowledge that will support the mass delivery of green refurbishment.

National Refurbishment Centre, September 2012 The National Refurbishment Centre BRE, Bucknalls Lane Watford, Herts WD25 9XX www.rethinkingrefurbishment.com

Acknowledgements

The National Refurbishment Centre would like to thank all those who took part in the UK-wide Rethinking Refurbishment workshops and whose views are presented in this report. The National Refurbishment Centre would also like to thank its partners for their continued support and direction, without which it would not be possible to deliver data, knowledge and insight to industry and government.

National Refurbishment Centre Partners

Contents
Page 03 04 06

Foreword Executive summary Where we are now

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Around the UK
14 16 18 19 21 England Wales Scotland Northern Ireland The workshops

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The National Refurbishment Centre

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Appendix - full workshop feedback

Foreword
Over the past two years the National Refurbishment Centre led a series of workshops across England, Wales, Scotland and Northern Ireland to find out what the sector thinks are the main barriers and opportunities to delivering sustainable refurbishment on a mass scale. Much has happened during this time. Refurbishment has become an increasingly important sector for the construction industry and has demonstrated its resilience in an exceptionally tough economic climate. At the same time policy makers and industry stakeholders recognise the critical role that green refurbishment has to play in meeting the UKs low-carbon commitments. Put simply, if the countrys existing buildings cannot be made more energy-efficient it is unlikely that the UK will reduce CO2 emissions by 80% by 2050 a commitment enshrined in the Climate Change Act. This is why, at the time of writing, the government is developing the Green Deal finance package for consumers, having already launched the Feed-in Tariff and Renewable Heat Incentive. It is also why new energyefficient and low carbon innovations are being rolled out and more colleges are starting to offer specialist retrofit courses for installers. At the same time more of the UKs universities are researching issues related to building refurbishment than perhaps at any time in the past. Yet there are still gaps in what we know about which solutions work best; gaps in knowledge that will make delivery of refurbishment on mass-scale more difficult. Since the first workshops were carried out in England in 2010, the National Refurbishment Centre has become a key evidence hub for both industry and government to support a nationwide refurbishment programme. In the past two years major product suppliers, retailers, housing associations, contractors, education providers and stakeholder organisations have become partners. The National Refurbishment Centre has gathered together data from over 500 refurbishment exemplars to begin to truly understand the cost and effectiveness of different energy-efficiency measures for different house and building types. This evidence has already been used by government in developing the Green Deal, for example.

The National Refurbishment Centres inaugural report Rethinking Refurbishment Developing a National Programme, set out to understand industry attitudes towards refurbishment and retrofit in England. This report widens that understanding with feedback from stakeholders in Wales, Scotland and Northern Ireland, while providing valuable information about the different policies and regulations within each of the devolved nations. It also summarises the characteristics of the UKs domestic and non-domestic market and includes some interesting and useful analysis of the data collected from the refurbishment exemplars so far. The aim of this report, therefore, is not only to explain the goals and achievements of the National Refurbishment Centre but to provide a concise overview of the refurbishment landscape across the UK. I therefore hope this report will be a useful resource to the sector as well encouraging more organisations to work with us as we seek to address the challenges and maximise the opportunities that the refurbishment of the UK building stock provides.

Chris Ward-Brown Chairman, National Refurbishment Centre

Executive summary
Buildings account for around 44% of the UKs entire greenhouse gas emissions, with 26% coming from homes. At the same, time fuel poverty is increasing on the back of rising fuel costs. In order to meet the 80% carbon reduction target for 2050 set out in the legally-binding Climate Change Act (2008) and to reduce fuel bills, the UK must make its buildings more sustainable and energy efficient. The challenge is great. In the UK we have some of the oldest building stock in Europe, most of which will still be in use by 2050. It is estimated, for example, that across the UK, only 1% of the housing stock meets modern thermal efficiency levels. Poor insulation means higher fuel bills, which pose a threat to the finances of most households across the UK, many of which are in fuel poverty. Building enough new low carbon homes to solve the emissions challenge is clearly an unrealistic proposition; the answer is to make our existing buildings perform better through sustainable refurbishment. However, to meet government targets refurbishment needs to take place on a massive scale. The government estimates that 5,000 homes will need to be refurbished per day, in order to meet its 2050 carbon reduction target. Equally, this presents massive employment opportunities, with the Energy Saving Trust estimating that more than 100,000 insulation jobs could be created. Initiatives such as the Green Deal finance package, Feed-in Tariffs and the Renewable Heat Incentive show that government clearly understands the vital role

that refurbishment and retrofit has to play whether it be simply insulating a loft or more complicated ecoupgrades such as an air-source-heat-pump. Likewise, industry stakeholders have for a number of years urged for a more concerted approach towards mass delivery of green refurbishment. Nevertheless, an effective delivery remains elusive, with the lack of hard data about the most effective energy-efficiency methods in terms of CO2 and energy bill savings, ease of installation, cost and maintenance.

Some challenges
 More than 13,000 homes per week will need to be refurbished if we are to meet 2050 targets  Buildings (domestic and non-domestic) produce 44% of the UKs CO2 emissions  39% of the existing housing stock was built before 1945  4 million households are currently in fuel poverty and this figure is rising.

Creating an evidence hub In response, BRE and the Energy Saving Trust joined forces with partners to create the National Refurbishment Centre (NRC). Since 2010, the it has been compiling evidence from over 500 refurbishment exemplars, believed to be the largest data-set of its kind in the UK. As an evidence hub, the National Refurbishment Centre has already provided the Department of Environment and Climate Change with data from its refurbishment exemplars to support the development of the Green Deal financial mechanism. It has also developed a publicly accessible online database called the Refurbishment Portal. By gathering data and analysing refurbishment measures, the NRC is able to inform initiatives geared towards carbon reduction across the sector. By having a clear understanding based on hundreds of exemplars, it is able to work with its partners to identify efficiencies in the supply chain, effective solutions, and inform into the skills arena on best practice and buildability for the existing

stock. And by focusing on area-based interventions it can guide a programme of works across the UK, with an eye on achieving long and medium term carbon reduction targets. Understanding the effectiveness of refurbishment solutions is the focus of the NRC but so too is the skills agenda, for the right balance needs to be achieved between off-site manufacture, product innovation and skilled on-site trades to maximise the savings from products and services. The NRC also raises awareness about refurbishment and regularly speaks at workshops, seminars and conferences. It will continue this role of supporting both government, and industry in the development of a practical, evidencebased approach to delivering green refurbishment on a nationwide scale, with a particular emphasis of identifying gaps in current solutions and skills. What industry wants Collaboration and knowledge sharing is key to such an initiative, which is why a series of workshops was carried out in England, Wales, Scotland and Northern Ireland, to understand the challenges and opportunities of those directly involved in refurbishment. These workshops took place over an extended period between 2010 and 2011. The views expressed, while broadly similar, reflect the introduction of government initiatives during 2011 and 2012 and conveyed certain local considerations. For example, both Welsh and Scottish workshop participants highlighted issues related to rural communities and building types; in Scotland there was a particular problem of some inappropriate house designs for local weather. In Northern Ireland, participants were particularly keen for more leadership and joined-up thinking from government. Workshop participants strongly agreed that a more joined-up approach was urgently needed, with better co-ordination and collaboration. They wanted a one-stop shop of reliable, impartial information and guidance, built on existing tools, knowledge and best practice on a variety of subjects from technical know-how to potential sources of finance. They also wanted a single voice that could bring organisations together, inform government thinking and shape the refurbishment agenda.

In addition, participants wanted the following:  evelopment of refurbishment standards, including a D refurbishment equivalent of the Code for Sustainable Homes. Better skill levels particularly for smaller building contractors and local professionals, creating links with training providers all levels. Solutions based on local building-types and materials, with a reliance on local contractors to deliver work wherever possible. Promotion of practical and achievable solutions, such as cavity wall insulation; easy-to-use, low-tech solutions; and both project-by-project as well as whole house approach to refurbishment.  evelopment of improved funding streams and D financial incentives to improve the business case for manufacturers and suppliers and for consumers to invest in new technology. Improve communication and engagement of the supply chain especially small building contractors and consumers regarding the benefits of green refurbishment.

Our mission
The NRC aims to support a joined-up approach backed up by robust performance data, strengthened by collaborative practical problemsolving. Bringing together the widest range of partners will allow the sector to shape the agenda, develop best practice and through partner activity, engage consumers and the small building contractors who are the backbone of UK refurbishment.

Where we are now

The UK building sector currently faces wide-ranging challenges, including the target to reduce greenhouse gas emissions by 80% by 2050[1]. This section introduces those challenges but also opportunities.

The challenges
It is widely agreed that our changing climate poses a great threat to the planet. If greenhouse gas emissions continue to grow at the present rate, by 2050 CO2 levels in the atmosphere are likely to be twice pre-industrial levels, resulting in high temperature increases. A temperature increase beyond 2C above pre-industrial levels is regarded as a tipping point beyond which severe rises in temperature become irreversible [2]. The effects of climate change are already being felt in the UK. According to the Met Office, the country has experienced nine of the 10 warmest years on record since 1990. Sea levels have risen 10cm since 1900, and total summer rainfall has decreased in most parts of the country[3]. Reducing CO2 by 80% In 2008, the UK passed the Climate Change Act to try and reduce its greenhouse gas emissions through legislative measures. Under this long-term, legally-binding framework, the UK is committed to an 80% reduction in CO2 emissions by 2050 against 1990 levels, and a 30% reduction by 2020. The Act places a series of caps on total UK emissions, which from 2013 will come under the EU Emissions Trading Scheme and other international schemes. Under these carbon budgets, set over successive five-year periods, every tonne of greenhouse gas emitted between now and 2050 will count. Where emissions rise in one sector, the country will have to achieve corresponding falls in another. The trouble with our buildings In the UK, buildings are responsible for 44% of CO2 emissions, with 26% being produced by around 26 million homes and 18% by two million non-residential buildings[4]. Houses alone produced 153 MtCO2 in 2006,[5] helping to bring about the climatic and weather changes that adversely impact buildings, such as floods from increased

Pre-1919: 21%

Post-64 43% 1919-44 16%

measures like cavity-wall insulation. Generally speaking, the energy performance of many older buildings falls below that of newly-constructed ones. For example, in its Home Economics report, the Energy Saving Trust shows that a pre-1919 electrically heated terraced house with poor energy-efficiency measures will leak 14.2 tonnes of CO2 annually. Yet while poor-performing pre-1919 homes of this sort emit the most CO2 they make up a relatively small fraction of the overall stock; in terms of sheer of numbers, the greatest challenge we face therefore comes from those houses built later in the twentieth century[7]. Poor quality and thermally inefficient buildings are also likely to suffer most from cold and dampness. While each of the devolved nations has a housing quality standard (see panel), this only covers local authority and registered social landlord dwellings. With social housing in decline across the UK (in England local authority-owned homes dropped from 2.81 million in 2001 to 1.73 million in 2011[8]) millions of privately rented and owner-occupier households could be suffering from cold and damp conditions. The poor quality of our buildings is a real problem when we consider that at least 75% of existing buildings will still be in use in 2050[7]. Cold, damp homes have a financial as well as a human cost. Using data from the 2007 English Housing Condition Survey and the governments Housing Health and Safety Rating System, BRE estimated that the poorest housing in England alone could be costing the NHS more than 600 million per year to treat the health problems of occupants; the overall cost to society could be as much as 1.5 billion annually in lost earnings[9].

1945-65 20%

Fig. 1 UK housing stock. Almost 60% of housing in England, Scotland, Wales and Northern Ireland were built before 1964 (Source: unpublished BRE research).

rainfall and subsidence from drought conditions. Clearly the countrys buildings must perform better. This is not helped by the UK having some of the oldest buildings in Europe. Take our houses, 21% of which according to the latest BRE research[6] were built before 1919 and the advent of cavity walls (Figure 1). Often described as hard-to-treat, these solid-wall houses are unable to benefit from relatively simple energy-efficiency

Standards in social housing


England, Wales, Scotland and Northern Ireland each have standards to ensure that their social houses are warm, weather tight and have modern facilities. In England and Northern Ireland, for example, the Decent Homes Standard is linked to environmental health regulations under which social homes should be free of Category 1 (serious) hazards, which broadly correlates with having an energy-efficiency standard of less than SAP35. Decent homes also need to meet a thermal comfort criterion: they should be fitted with programmable heating systems, and to have minimum levels of loft insulation and/or cavity wall insulation. Scotland and Wales equivalent are the Scottish Housing Quality Standard and Welsh Housing Quality Standard. Although these standards apply to social housing, councils may work to ensure private properties meet the standards.

Fuel poverty Climate change may be the greatest environmental challenge the world faces, but for millions of UK households, simply being able to heat their homes properly is the most immediate problem. The good news is that fuel poverty has declined slightly. According to government figures released in May 2012, across the UK fuel poverty fell from 5.5 million households in 2009 to 4.75 million in 2010. This was partly due to energyefficiency improvements, particularly the installation of condensing boilers. There was a similar drop in vulnerable households (those with elderly, children or somebody who is disabled or long term sick residents)[10]. However, an upward pressure on energy prices due to increased worldwide demand, has led to increases in fuel bills, which are unlikely to drop significantly. According to government figures published in June 2012, for example, the overall prices paid for all fuel and light increased by 10.9% between the first quarters of 2011 and 2012[11]. This poses a real threat to recent improvements in fuel poverty figures. Make good our existing buildings Given the low rates of new house building in recent years and issues around planning, constructing our way towards the 80% carbon reduction target is unrealistic. Improving the buildings we have will be the most effective way to reduce carbon and improve comfort on a large scale. Indeed, the Committee on Climate Change (CCC), which was set up in 2008 as part of the Climate Change Act, recognised the importance of refurbishment in its first report to government[12] when it advised that the aggregate reduction of emissions from existing buildings far exceeded those of new buildings. In its 2009 publication Knock it down or do it up, BRE also described the considerable green house gas emissions and waste created from the demolition of buildings and traditional construction methods. It also set out the arguments of English Heritage and CABE who advocate the importance of old buildings in place-making[13]. However, the challenge of green refurbishment (which includes basic measures, such as loft insulation, and more complicated ones such as solid wall insulation and renewable heat generation) cannot be over-estimated. The government estimates that 5,000 homes will need to be refurbished per day, in order to meet the governments

Refurb or retrofit?
By refurbishment, the National Refurbishment Centre means multiple energy-efficiency measures fabric, heating and renewable technologies applied sequentially or as part of a whole house solution. Retrofit is the installation of a specific measure, such as fixing photovoltaic panels to a factory roof or fixing external solid-wall insulation to the front of a terraced house. 2050 targets. Yet so far the pace of refurbishment remains slow. For example,while home insulation rates broadly increased in 2011-2012 (Figure 2) they will need to be ramped up significantly to align with the CCCs target trajectory set out in its third progress report[14], which quotes figures from the Department of Energy and Climate Change ( Figures 3 and 4). Room-by-room versus a whole-building approach The expense and complexity of refurbishing whole buildings is the primary reason that individuals and business do not carry out energy-efficiency measures. For example, the Energy Saving Trust found that more than 60% of UK householders cited hassle and lack of knowledge as the main reasons for not implementing energy-saving measures[15]. Nevertheless, 85% of householders were also willing to stretch their normal home improvement budgets by up to 10% to include energy-efficiency measures. With four million households planning or anticipating a major refurbishment, such as the renovation of a kitchen or bathroom, one way to increase consumer engagement is to encourage householders to add energy-efficiency measures to these trigger points. Critics of the room-by-room approach might argue that carrying out refurbishment projects in one hit better maximises economies of scale and actually reduces longer-

Defining a fuel-poor household


The methodology for defining fuel poverty is set by each of the devolved nations, though they are broadly the same. A household that needs to spend more than 10% of its income on fuel to maintain an adequate level of warmth is generally defined as being fuel poor.

16000 14000 12000 10000 8000 6000 4000 2000 0 Apr Apr Apr 2007 2008 2009 Cavity wall insulation Apr 2010 Jan Apr Jul 2011 2011 2011 Loft insulation >125mm Oct 2011 Jan 2012

140 120 100 80 60 40 20 0 Apr Apr Apr 2009 2010 2008 Solid wall insulation Jan 2011 Apr 2011 Jul 2011 Oct 2011 Jan 2012

Fig. 2 Estimates of home insulation levels in the UK (Reproduced from Estimates of home insulation levels in Great Britain: January 2012, DECC Statistical Release, March 2012).

9 8 7 6 5 4 3 2 1 0

CCC Indicator trajectory Actual trajectory Trajectory if 2010 installation rates continues

Fig. 3 The Climate Change Committees projections for cavity wall insulation cumulative installations (2008-2015)
(Source: Climate Change Committee Meeting Carbon Budgets ensuring a low-carbon recovery, p.90)

2008

2009

2010

2011

2012

2013

2014

2015

2.5

CCC Indicator trajectory Actual trajectory Trajectory if 2010 installation rates continues

2.0

1.5

1.0

0.5

Fig. 3 The Climate Change Committees projections for solid wall insulation cumulative installations (2008-2015)
(Source: Climate Change Committee Meeting Carbon Budgets ensuring a low-carbon recovery, p.90)

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

term disruption caused by repeated visits from the builder. However, if the 2050 target is to be met, all approaches will need to be considered and implemented, whether it be a room-by-room, whole-house, street-by-street or even city-by-city approach. Economic opportunities The challenges are great but there are also opportunities. Domestic and non-domestic refurbishment was worth

Fabric-first approach
Renewable energy sources should always come second to insulating a building and making it airtight. Without these measures, occupiers wont receive the benefits from their renewable energy and micro-generation installations.

35.6 million or a third of total construction output in 2011[16] and with around 23 million homes needing refurbishment between now and 2050, the retrofit programme could be worth 280 billion to the UK economy in that period. The Energy Saving Trusts Home Economics report of 2011 estimated that more than 100,000 jobs could be created to insulate 5.7 million empty cavity walls and 12.8 million lofts that need more insulation; with boiler replacement, the total number of jobs created rises to 140,500. That includes not only installer jobs, but also manufacturing and assembly, transport and administration. For full-scale refurbishments (including solid-wall insulation, heating controls, draught-proofing, triple-glazing and renewable) a total of 4.7 million jobs could be supported[17]. Recognising the potential, government has developed the Green Deal financial mechanism to kick-start the green refurbishment market, which will enable providers to offer consumers up-front loans for refurbishment and retrofit measures, which can be paid through energy bills. As part of this the government is committing funds for 1,000 Green Deal apprentices.

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Non-domestic buildings As has already been highlighted, non-domestic buildings, account for 17% of the countrys carbon emissions. In its report Building the Future, Today, the Carbon Trust reported that in 2005 two-thirds of emissions from nondomestic buildings come from industrial, retail, leisure and hospitality buildings and commercial offices (Figure 5) Nearly half of emissions currently come from heating; just under a quarter from lighting and the remainder split between cooling and everything else (Figure 6).
UK non-domestic buildings: 18% of 560MtCO2 emitted in in 2005

More than three-quarters of non-domestic buildings were built before 1985, with nearly a third built before 1939; by 2050, 32% of these will still be standing. However, the Carbon Trust believes that non-domestic buildings present a particularly good opportunity to cost-effectively reduce the UKs overall carbon emissions. It believes that a 35% CO2 reduction could be made by 2020 against 2005 levels with a net benefit to the UK of at least 4 billion. It also estimates that up to 75% of carbon could be cut by 2050 at no net cost, using measures that exist today[18].
100% = 106MtCO2 (2005) Office equipment Hot water Other

Healthcare

1%

Transport

1%

4% 14%
Miscellaneous

3% 4%

Heritage & entertainment Public offices Sports Govt. estates FE & HE education

3% 3% 4% 4% 4% 7%
Schools Commercial offices

23%
Industrial

Catering

8%

11%
Cooling & ventilation

46%
Heating

18%
Retail

23% 9% 15%
Lighting Hotels, inns & restaurants

Fig. 5 Breakdown of non-domestic emissions by sector, (Reproduced from the Carbon Trusts Building the Future Today report).

Fig.5 CO2 emissions by end use (Reproduced from the Carbon Trusts Building the Future Today report).

EU Directives
The Energy Performance Directive (EPBD) The EPBD, which covers new and existing buildings, governs the implementation of Energy Performance Certificates, Display Energy Certificates and energy efficiency requirements within UK Building Regulations. Originally approved in 2002, the EPBD is now being replaced by a recast EPBD, which strengthens energy requirements for new buildings. There are currently no specific targets set for refurbishment, though there is an expectation that member states base requirements around their most energy-efficient public buildings.

The Energy-Efficiency Directive (EED) The proposed EED sought to impose legally-binding energy-efficiency targets of 20 % by 2020 across Europe, providing a legal framework for the EUs 2020 Vision. However, a compromise EED, was accepted by the European Council in June 2012, under which member states can set their own targets. Furthermore, obligatory energy-efficiency targets for public buildings may now only apply to central government buildings. However, member states must present an energy efficiency action plan every three years and develop roadmaps for refurbishing buildings.

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Towards a mass-refurbishment drive Since the publication of Rethinking Refurbishment. Developing a National Programme in October 2010, sustainable refurbishment and retrofit has risen firmly up the agenda of both government and industry. The development of the Green Deal, launched in October 2012, has provided industry with a focus but a practical nationwide delivery programme for retrofitting buildings still remains elusive. A major hurdle is still the lack of knowledge about the performance of existing and emerging green refurbishment and retrofit solutions as they are used in different building types. To that end, the National Refurbishment Centre has been collecting the data from 500 refurbishment demonstration projects to analyse such things as cost effectiveness and possible gaps in skills. Understanding the practical issues that those involved with refurbishment actually face is another strand of evidence that will help identify routes towards mass refurbishment. The National Refurbishment Centre has therefore sought the views of professionals in a series of workshops. The following section examines what stakeholders from England, Scotland, Wales and Northern Ireland believe are the main barriers and opportunities setting it in the context of the regulatory and legislative landscape.

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Around the UK
An overview of the regulations and government initiatives in each of the devolved nations and industry attitudes across the UK.

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England
English housing at a glance

j k l

Regulations and Standards


Building Regulations Part L (England & Wales) Part L of the regulations covers energy efficiency in domestic and non-domestic buildings. It is the governments primary tool for driving a buildings environmental performance standards in England. The latest revisions, which came into force in October 2010, require a 25% reduction in CO2 emissions against 2006 regulations rising to 44% in 2013, with a zero carbon target for 2016. SAP sets emissions target, which is related to size and form of the home. Under Part L1B (Existing buildings) only significant improvements need be applied to such things as extensions, installation of double glazing or fitting of conservatories. There are also consequential improvement requirements that affect existing homes for example, upgrading the energy efficiency of the whole of an internal wall when work is planned to be undertaken on more than 25% of that wall. For certain types of major works with floor areas over 1,000m2, where the work has the potential to increase energy intensity, such as extending the building, additional measures are needed to make the existing building more energy efficient. Energy Performance Certificate (EPC) Homeowners are required to provide potential buyers and tenants with EPCs whenever a home is being sold or rented. The EPC, using theoretical modelling based on the performance potential of a buildings design fabric, gives the home an A (most efficient) to G (least efficient) energy-efficiency rating, standardised information about running costs, and recommendations for energyefficiency and low-carbon improvements. EPCs are valid for 10 years and should be provided alongside property particulars. EPCs are produced by accredited domestic energy assessors, using a reduced-data version of the SAP methodology. Non Domestic Energy Performance Certificate (NDPC) As with EPCs, NDPCs use an A-G rating system to show how energy-efficient a commercial or public building is and is calculated in the same way as an EPC.

Households: 21.5 million (2009)j Average SAP rating: 55 (2009)j Households in fuel poverty: 3.5 million (2010k Homes with cavity wall and loft insulation: 14.2% (Q16, 2012)l

English Housing Survey 2009-10, DCLG, Feb 2011 Annual Report on Fuel Poverty Statistics 2012, DECC, 2012 CERT Summary Report Q16 by English Regions, Scotland, Wales, Energy Saving Trust

Post-1990: 12% 1980-90: 9%

Pre-1919: 21%

1965-80: 21% 1945-64: 20%

1919-44 17%

Age of Englands housing stock (Source: English Housing Survey 2009-10 Household Report, Communities and Local Government, July 2011).

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Display Energy Certificate (DEC) The equivalent of an EPC for large public buildings, again, the DEC uses an A-G rating system to show energy performance. The DEC is based on the actual amount of metered energy used by the building over a period of 12 months. Decent Homes Standard In 1997, the Department for Communities and Local Government invested around 20 billion into improving substandard social housing through new kitchens, bathrooms and central heating systems. Although the programme did not explicitly deal with measures to reduce carbon emissions, more than 600,000 households received insulation improvements, and more than 80,000 had double-glazing installed. By the end of 2010, 92% of social housing met the standard of being warm and weatherproof with reasonably modern facilities. The governments 2010 Spending Review settlement made 1.6 billion available to local authority landlords and ALMOs to help tackle the backlog of homes not meeting the Decent Homes Standard. Environmental Health Regulation Regulations identify excess cold in homes as a significant risk to vulnerable people. Local authorities therefore have a duty to ensure that homes are free of Category 1 excess cold hazards under the Housing Health and Safety Rating System (HHSRS). A home with a Category 1 excess cold hazard is generally recognised as having a SAP2001 (energy efficiency) rating of less than 35, which equates with an F and G rated EPC. Where a Category 1 hazard is identified, local authorities have a duty to work with, and if necessary to force, landlords to make energy efficiency improvements.

Energy companies and other Green Deal providers from the private sector can offer consumers energy-efficiency improvements to their homes and businesses worth up to 10,000 paid over 25 years. Critical to the success of the Green Deal, is the governments golden rule by which monthly savings must be greater than the monthly loan repayment for the total cost of the measures, labour costs and financing costs. However, critics such as Which?, argue that savings on energy-bills are not guaranteed and that the proposed 7.5% interest on repayment is too high. The mechanism was originally conceived for the installation of wall and roof insulation. However, while recognising that this is the most cost-effective measure, the government has extended the Green Deal to cover lighting, micro-generation and renewable heating. ECO The Green Deal will be supported by a new Energy Company Obligation (ECO) that replaces existing obligations (see CERT and CESP below). Funding will be targeted at vulnerable and low-income households and at hard-to-treat buildings such as pre-1919 houses that need more expensive measures such as wall insulation. CERT The Carbon Emissions Reduction Target (CERT) is being replaced by the Energy Company Obligation in 2012 (see ECO above). CERT required all domestic energy suppliers to make savings in the amount of CO2 emitted by householders. Since 2002, CERT and its predecessors have given 7.5 million homes wholly or partly subsidised energy-saving measures. CESP The Community Energy Saving Programme (CESP) is being replaced by the Energy Company Obligation in 2012 (see ECO above). Funded by a financial obligation on energy suppliers, CESP tackled both carbon emissions and fuel poverty. It targeted the most socially and economically deprived areas of the UK to improve energy efficiency standards. CESP promoted a whole house, street-by-street approach to refurbishment, delivered through the development of community-based partnerships between Local Authorities, community groups and energy companies.

Incentive programmes
The Green Deal The Green Deal is a central plank of the governments Energy Bill. It is a funding mechanism that allows consumers to invest in energy-efficiency measures at no up-front cost by allowing them to pay through savings on their energy bills.

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Feed-in Tariffs (FiTs) Launched in April 2010 with an 867 million budget over four years, the governments FiTs scheme encourages consumers to invest in small-scale micro-generation technologies such as photovoltaic (PV) panels, by allowing them to claim regular payments from energy suppliers for generating and exporting surplus electricity back into the national grid. However, an unexpected rise in the installation of solar PV, fuelled by a 45% drop in installation costs against 2009 levels, threatened the budget. From August 2012, the standard generation tariff for a solar PV (up to 4kW for a retrofit project) dropped from the original 41.3 pence per kW generated to 16 pence (EPC Band D or higher). Eligibility was also limited to premises with a certain level of thermal efficiency. Renewable Heat Incentive (RHI) The RHI scheme provides consumers with a financial incentive to install renewable heating technologies such as solar thermal systems and heat-pumps by allowing them to claim money back from energy suppliers for every metered kW produced. It was introduced in 2012 for non-domestic users, with tariffs set at different rates and spanning 20 years. For example, a large ground source heat pump of 100kWth or above, will receive 3 pence per kWth metered. The government has so far invested 15 million towards the Renewable Heat Premium to help domestic consumers install solar thermal hot water systems, heat pumps and biomass boilers. Payments range from 300 to 1,250 depending on the technology. The launch of the RHI for domestic households is expected for the summer of 2013, following government consultation.

Wales
Weslsh housing at a glance

j k

Households: 1.3 million (2009)j Average SAP rating: 61.9 (2009)j Households in fuel poverty: 332,000 (2008)k Homes with cavity wall and loft insulation: 17.9% (Q16, 2012)l

Household Estimates for Wales, 2010. Welsh Government, 2011 Living In Wales 2008, Welsh Government l CERT Summary Report Q16 by English Regions, Scotland, Wales, Energy Saving Trust

Post-1964: 38%

Pre-1919: 30%

1945-64: 21%

1919-44 11%

PAYS
Ahead of the Green Deal, the government carried out five Pay As You Save (PAYS) pilot schemes to understand householder motivation and take-up. A total of 311 householders across England signed up to the pilot, with on average two to three energy efficiency measures installed in each household. The average total value of each package ranged from 4,194 to 13,217, with over 70% repaying over 25 years. Double glazing was the most popular measure, followed by solar PV. The Energy Saving Trust, which managed the pilot schemes, has published its findings in the Home energy Pay As You Save pilot review report[19].
Age of Wales housing stock (Source: Unpublished BRE research, 2012).

Regulations and standards


Building Regulations (Wales) From 1 January, 2012 revisions to the current Building Regulations (England and Wales) and associated procedures and guidance will be made by the Welsh government, which is expected to issue its first devolved

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Building Regulations in 2013. The government has indicated that it will set a 55% improvement (over the 2006 Building Regulations) as the target for the first changes to the devolved regulations. The Welsh government is committed to the Zero Carbon housing and the Assembly Government intends to undertake a further review of Part L in 2014 to consider the next steps towards zero carbon. Energy certificates (EPCs and DECs) Refer to the England section for details about Energy Performance Certificates (EPCs) and Display Energy Certificates (DECs). Welsh Housing Quality Standard The Welsh Assembly Government has set a target that all social housing in Wales should meet the Welsh Housing Quality Standard (WHQS) by 2012. The WHQS sets a minimum energy performance standard of SAP65 (in the middle of Band D on an Energy Performance Certificate), and also requires some minimum features in homes, such as programmable heating controls. Environmental Health Regulation Refer to the England section for details.

Incentive programmes
The Green Deal, Energy Company Obligation, Feed-in Tariffs, and the Renewable Heat Incentive, apply to Wales. Refer to the England section for details. The Arbed scheme Arbed means save in Welsh and the scheme aims to upgrade the energy efficiency of existing housing stock in some of the most deprived parts of Wales. Phase 1, which ended in March 2011, aimed to improve the energy efficiency in 6,000 homes. The welsh government is committing 45 million for Phase 2 to improve the energy efficiency of a minimum of 4,800 existing homes and reduce a minimum of 11.6 KTCO2 (Kilo-tonnes of CO2) of greenhouse gas emissions by the end of 2015. Nest Nest is the Welsh fuel poverty scheme that offers advice, full home energy assessments and home improvements for the most energy inefficient homes at no cost to the occupant. The scheme is open to those receiving benefits and living in the hardest-to-heat homes. Nest can offer a range of home improvements, including central heating boilers and loft, cavity wall and solid wall insulation.

Tackling Fuel Poverty in Wales


Wales introduced a national fuel poverty scheme on 1 April, 2011. The scheme focuses on homes that have an Energy Performance Certificate Band F or G rating and householders who are eligible for a range of means tested benefits.

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Scotland
Scottish housing at a glance

j k l

Pre-1919: 19% Post-1964: 44%

Households: 2.37 million (2011)j Average SAP rating: 61.9 (2011)j Households in fuel poverty: 658,000 (2010)k Homes with cavity wall and loft insulation: 15.2% (Q16, 2012)l

1919-44 14%

Estimates of Households and Dwellings in Scotland, The Scottish Government 2011 The Scottish House Condition Survey, The Scottish Government, 2011 CERT Summary Report Q16 by English Regions, Scotland, Wales, Energy Saving Trust, 2012

1945-64: 23%

Regulations and standards


Building Standards Section 6 of the Scottish Building Standards, which relates to energy performance, came into force in 2009, with amendments in 2010. For new homes, the standards and guidance are intended to achieve an improvement of around 30% reduction in carbon emissions against previous standards (2007). It is expected that further requirements will be introduced in 2013 and 2016. The standards include a consequential improvements requirement. This applies when homeowners build an extension to an energy inefficient home and choose, either to make energy saving improvements to the whole house, or to build the extension using higher insulation standards. A building owner may employ an Approved Certifier of Design to ensure that their building meets the requirements of Section 6 (Energy) Scottish Building Standards. The status of Approved Certifier of Design is only given to people who hold appropriate qualifications and have sufficient experience to certify that the part of the design process relevant to Section 6 is compliant. Energy certificates (EPCs and DECs) Refer to the England section for details about Energy Performance Certificates (EPCs) and Display Energy Certificates (DECs).

Age of Scotlands housing stock (Source: Unpublished BRE research, 2012).

The Scottish Housing Quality Standard The Scottish Housing Quality Standard (SHQS), introduced in 2004, is the principal measure of housing quality in Scotland. It is the equivalent to the Decent Homes Standard in England and Northern Ireland and the Welsh Housing Quality Standard. In order to pass this minimum standard, properties must meet a set of five broad housing criteria, which consist of 55 elements that the property is measured against. For social housing, there is a policy target for landlords to bring their stock up to every element of the standard by April 2015. Private sector landlords and owner-occupied households are not subject to this target. In June 2012, the Scottish government also published its consultation document, Developing an Energy Efficiency Standard for Social Housing. The draft standard builds upon the SHQS and is part of Scotlands wider Sustainable Housing Strategy. The aim is to set a challenging, yet achievable rating, which both warm, low-carbon homes in a financially sustainable way.

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Northern Ireland
NI housing at a glance

j k

Households: 688,700 (2008)j Average SAP rating: 57 (2009)j Households in fuel poverty: 302,300 (2009)k Homes with cavity wall and loft insulation: 65% (2001-2009)k

2008 Based Household Projections for Areas within Northern Ireland, Northern Ireland Statistical Research Agency, August 2010 Northern Ireland House Condition Survey 2009, Northern Ireland Housing Executive, 2010

Pre-1919: 13% 1919-44 10% Post-1964: 60%

Incentive programmes
The Green Deal, Energy Company Obligation, Feed-in Tariffs, and the Renewable Heat Incentive, apply to Scotland. Refer to the England section for details.

1945-64: 17%

The Home Insulation Scheme


The Home Insulation Scheme (HIS) is designed to improve the energy efficiency of houses in specific areas of Scotland, selected on the basis of deprivation, housing stock, and levels of emissions. HIS promotes and installs free or discounted loft and cavity wall insulation plus other energy saving measures. It is available to around 380,000 properties in 29 local authority areas.
Age of Northern Irelands housing stock (Source: Unpublished BRE research, 2012).

Regulations and standards


Building Regulations (Northern Ireland) 2006 The conservation of fuel and power in dwellings is contained in Part F1 of the Building Regulations (Northern Ireland), which was last revised in 2006. As with Part L (England and Wales), the regulations

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apply to consequential work in existing buildings and major extensions. At the time of writing, consultation is underway for a further revision. It is expected that Northern Ireland will adopt the 25% reduction of CO2 emissions included in the 2010 revisions to Part L (England and Wales), which came into force in October 2012. Energy certificates (EPCs and DECs) Refer to the England section for details about Energy Performance Certificates (EPCs) and Display Energy Certificates (DECs). Decent Homes Standard The Northern Ireland Housing Executive is responsible for the Decent Homes Standard, which sets the standards for modern homes. In 2009/ 10 the Housing Executive invested 239 million on improvement programmes and maintenance of public housing; improving private sector homes through grant aid; promote good house design standards; and improve energy efficiency. Work in 2010/11 includes 3,150 improvements and planned maintenance work to 7,700 Housing Executive homes. Environmental Health Regulation Northern Ireland has so far not adopted the Housing Health and Safety Rating System (HHSRS), which has replaced the Fitness Standard in England. However, the Housing Executive still measure the HHSRS using the Housing Condition Survey (HCS) in order to compare data with other nations. Surveys have been undertaken against the 2001, 2006 and 2009 Northern Ireland HCS, with a 2011 HCS providing updated figures for Northern Ireland.

a business proposal submitted by the Green New Deal Group. The Northern Ireland government is assessing it against other options, such as an an extension to the Warm Homes budget. Northern Ireland Renewables Obligation (NIRO) NIRO is the main support mechanism for increasing the level of electricity consumption generated from renewable energy sources. NIRO places an obligation on electricity suppliers to account each year for a nincreasing amount of their sales from renewable sources or to pay a buy-out fee that is proportionate to any shortfall. Suppliers comply with the NIRO by presenting Renewables Obligation Certificates (ROCs) which are issued to renewable generators according to the level of output. The NIRO operates in tandem with similar obligations in the UK. Renewable Heat Incentive (RHI) In September 2011, the Department of Enterprise, Trade and Investment launched a public consultation on the potential introduction of the RHI in Northern Ireland. This consultation sought views of stakeholders on the design and implementation of the RHI as well as on other proposals for developing the renewable heat market. Among the proposals was that the RHI should be available to the domestic sector by October 2011, with interim support available until a longer term scheme is introduced. Warm Homes Scheme This scheme is funded by Northern Irelands Department for Social Development for those receiving benefits, homeowners and private landlord tenants. Measures covered include cavity wall and loft insulation. Warm Homes Plus is for households with Economy 7, solid fuel and bottled gas/LPG.

Incentive programmes
The Green New Deal The Green Deal will not apply to Northern Ireland. Instead, there is the Green New Deal Group is a coalition of 40 organisations and individuals from across the public, private and third sectors, with a wide-ranging programme to cut fossil-fuel consumption and build a competitive low-carbon economy. This includes the refurbishment of around 137,000 homes and transforming the energy performance of public buildings. The Green New Deal was allocated 12 million in the 2011-15 Budget but is currently under review, including

NISEP
The Northern Ireland Sustainable Energy Programme (NISEP) is Northern Irelands supplier obligation, similar to the Community Energy Saving Programme (CESP). NISEP promotes energy efficiency and sustainable energy supplies that offer the best value for customers, especially those who are vulnerable. Gas providers received funds in 2010, with plans to include organisations other than licensed energy suppliers in the bidding for funding.

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The Workshops
Between 2010-2012 the National Refurbishment Centre led a consultation across England, Wales, Scotland and Northern Ireland to understand the industrys views about delivering green refurbishment on a mass scale. The consultation began in England, with nine workshops held in Birmingham, London, Newcastle, Manchester, Loughborough, Bristol and Leeds. Workshops were then held in Cardiff, Glasgow and Belfast. Around 100 participants attended the workshops, providing valuable insights. Participants included renovation providers, product suppliers and manufacturers, local authorities, registered social landlords, housing associations, universities and government agencies. They were asked five questions: What are the drivers for reducing CO2 in existing buildings through refurbishment? What opportunities do these drivers bring to you and your sector? What are the barriers to delivering these opportunities? How do we remove the barriers and deliver low carbon buildings? What key things should we take into account when developing a national refurbishment programme?

What are the drivers for reducing CO2 in existing buildings through refurbishment?
Legislation At a national level, the Climate Change Act (2008) is driving government targets and policy, with Building Regulations Part L and improved EPC ratings being set by each of the devolved nations. Targets are also increasingly being set at a local level. Fuel poverty and energy security Increasing fuel poverty caused by rising bills as a result of increased global energy demand Poor housing Too many people live in poor quality homes causing health and societal problems. Economy There is a need to stimulate economic growth, including jobs, and to reduce the cost of bills for households and businesses. Need to create new domestic and export markets. Preserving character and heritage Mistakes in the past should not be repeated in new developments. Local heritage, character and identity, particularly of rural communities, needed preservation. Reduce embodied carbon Replacing existing buildings is more carbon intensive than repair/refurbishment.

The feedback from each of the workshops was broadly consistent and has therefore been compiled into a single questions and answer section. The full feedback from each of the workshops is included in the appendix on p. 31.

What opportunities do these drivers bring to you and your sector?


Do the right thing Green refurbishment is an opportunity for the construction industry to be part of the green economy. Increase jobs The refurbishment of thousands of buildings could increase employment opportunities, for apprentices, SMEs and professionals, including architects.

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Energise the supply chain and expand markets Expand and diversify into new markets for both existing and new products, including innovative technologies and processes. Raise skills Create entirely new, specialised skills, with a skills market made up of partnerships between organisations and educational providers. A skills and training certification scheme for refurbishment would be required, with the introduction of new skills to ensure quality and customer confidence. Improve buildings Extending the lifetime of existing buildings would increasing both their sustainability and market values. Improving the sense of place An opportunity for society embrace the cultural value of existing building stock and vernacular architecture in terms of improving the character of whole townscapes. Reducing fuel bills, increasing wellbeing Energy-efficient buildings could increase peoples disposable income, by helping to reduce fuel bills, but also increase their well-being. The refurbishment of cold and damp buildings would improve both the health of occupants and their ability to work.

Improve community and regeneration Green refurbishment could foster more community cooperation such as street-by-street improvements and district heating. Public sector investment Attract investment from the public sector where it might draw benefit from refurbishments. For example, the NHS might invest in healthier buildings if it is shown that it could save on treatment of individuals in the longer term. Green finance Financial services could play a role in delivering innovative green finance, so that people could start earning money from micro-renewables and also increase their property values.

What are the barriers to delivering these opportunities?


Lack of leadership There is poor leadership from government with a lack of clear and consistent policy direction, joined-up thinking between government departments, or positive messages from government to business. Planners are still negative and overall planning legislation too slow-moving. Poor regulatory frameworks Lack of national refurbishment standards, or clear targets for existing buildings within Building Regulations Part L, make it harder for industry to deliver effective solutions or products. The actual definitions of green refurbishment and low carbon buildings were too imprecise. Lack of business confidence A lack of clear government backing, including financial incentives and cautious lending from banks has caused a lack of businesses confidence or wherewithal to invest in a green refurbishment. Lack of a strong business case and too much risk The business case for green refurbishment is still weak. The high cost of new materials and developing new products will be prohibitive for some businesses. There is also a conflict between initial capital cost and long-term

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cost, which drives out innovation. Insufficient or slow returns on investment for manufacturers plus increased costs due to VAT increases. Tendering for refurbishment projects can also be complex and costly. Pay-back times for most larger renewable measures is to be too long typically seven to 10 years while some products and processes might actually have poor CO2-saving/payback ratios. Risk in refurbishment Compared with new build, refurbishment carries high risks, which are often borne disproportionately by very small sub-contractors. Public take-up Capital cost to finance energy-efficiency measures is a challenge on householder and business budgets. Lack of skills and knowledge There remains a shortage of skills, and a lack of readiness of national and local supply chains to deliver innovative refurbishment. Many small building contractors have limited innovative product knowledge or best practice experience. Builders often lack the confidence to sell new technologies, and customers often distrust their ability to do a good job. Training often focuses on whether the job is being carried out properly, rather than whether the right job is being carried out in the first place. Unwillingness to change Construction industry is often resistant to change, and businesses are unwilling to give up competitive advantage. Local refurbishment markets may be too fragmented to enable change; small building contractors unwilling to oversell their services in a highly competitive market. Public do not understand the benefits, and are afraid of the cost and disruption. No clear communication or guidance Lack of skills, knowledge and engagement was due to a corresponding lack of clear, consistent information. Homeowners, social and private landlords and building professionals are a disparate audience and existing information is often conflicting. The lack of authoritative practice guides hinders the industry in delivering green refurbishment solutions and that the lack of clear communication prevents the mobilisation of the wider public.

Complex delivery There are additional costs and disruption associated with refurbishment projects, such as decanting residents can account for half the cost of social housing refurbishment, ill-planned refurbishment to offices can severely disrupt business. The levels of people, resources and timescales associated with large-scale refurbishments remain unclear. Complexity of green refurbishment Householders put off by the expense and disruption of refurbishing a whole house and daunted by possible solutions. Previously unknown structural problems, and other hidden horrors such as asbestos and dry rot, could also complicate estimation of costs. New technology The route to market is too often delayed by the accreditation process, and that the industry can be slow in adopting new products. End-users may also be put off by the real or perceived complexity of new technologies, and use it either incorrectly or not at all thus not gaining the benefits.

How do we remove the barriers and deliver low carbon buildings?


Stronger leadership Greater clarity of purpose and strategic thinking from government and better co-ordination between public bodies. The government should set out a roadmap for new policies and roadmaps with a minimum timescale and legislation fast-tracked. All stakeholder groups need to be more pro-active about influencing government thinking and policy development, as well as developing standards. Better regulations and standards Clear thermal standards should be developed. Building Regulations should be developed to make green refurbishment the norm, with certification for qualityaccredited buildings. In general there should be more stringent and enforceable law, including compliance with Part L, and tighter regulation on what manufacturers can claim. Tough financial penalties should be created for not meeting targets.

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Create clearer routes to funding In addition to FiTs and RHI, building owners should benefit from other incentives such as reduced VAT, stamp duty council tax rebates linked directly with EPCs. Other funding proposals included interest-free loans with long pay-back periods, loans that are paid back on the sale of the home, lower-rate green mortgages, and extending the boiler scrappage scheme. In general there is requirement for clearer direction from funding bodies and for funds to be ring-fenced. Improve delivery Create economies of scale through community partnerships and partnerships between housing associations for street-by-street programmes. Be pragmatic, acknowledging that different schemes and buildings, need different solutions with different results. Councils should facilitate a volume refurbishment as they understand the local building stock. More public buildings could become refurbishment exemplars, with more co-ordination of the different projects. Research and development into delivery processes will help volume refurbishments. Provide better training A better spread of green skills training across the country to give local workforce the appropriate skills. There should be mass-skills training with more collaborative working between different trades. Funding should be prioritised towards providers that up-skill existing trades. Specialist, refurbishment-related skills accreditation would give confidence to consumers. Sustainable refurbishment should be embedded in the continuing professional development (CPD) of building professionals, especially architects. The profile of building engineers, who specialise in building technology, urgently needs to be raised so that more young people will consider it as a career. Create a stable market environment More stability to deliver mass retrofit, with a betterintegrated supply chain to drive down costs, and industrialised solutions developed to deliver at scale. Delivery could be enhanced by replacing individual consultants and contractors with more integrated solution providers. Manufacturers want a clear brief of the solutions needed to develop the right products, and a payback incentive to get 50% of savings. Project insurance

would help to overcome risk transfer, while demand from local authorities, housing associations and ALMOs should be consolidated to create an initial mass-market. Simplify and improve solutions Develop more products that are easy to use and dont require specialist skills to install. Create plug and play solutions to remove complexity and disruption. Focus on the 20% of measures that achieve 80% of CO2 savings. Architects should incorporate viable products in their designs. Surveyors should give homeowners independent advice about specific solutions, and phased refurbishment. Local authorities could present local communities with optimum external wall insulation solutions, in partnership with providers, for street-by-street installations. This would help spread costs, and would help with differences in zoning, u-values and possible infringements of party wall legislation that can arise when individuals undertake their own insulation projects. Building consumer confidence Trade associations have a key role to play in raising consumer confidence. Trusted contractor schemes or installer networks, endorsed by trade bodies, could include site visits. Other independent inspection and quality control mechanisms could also be developed, with insurance-backed guarantees and warrantees to further strengthen confidence. Increase knowledge transfer and awareness Better co-ordination of refurbishment demonstration projects carrying out valuable work so lessons reach a wider audience. More information about the benefits of each technology for the end user to help identify robust mass retrofit solutions. An awareness drive aimed at local authorities, from chief executives to building control officers. Changing behaviour Energy-efficient buildings need to be promoted at every level, from schools to the mass media. Lessons could be learned from success of the double glazing sector, which engaged the public and created a market demand that changed consumer behaviour. Educate occupants so that technologies properly and not abandoned. More effective communication Messages about the benefits of green refurbishment

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need to be stronger, with an emphasis on reduced energy bills. Information needs to fit audience needs, with communication campaigns for homeowners, private and social housing landlords, business and building professionals. Free, impartial advice should be easily accessible from local authorities and independent bodies, and demonstration project case studies more widely disseminated. Provide comparison-based information through DIY retailers and builders merchants and help tap into traditional trigger points.

and can be adapted further based on market need. Standard solutions developed for individual elements, with ratings for different products and systems. Effective delivery solutions Public and private partnerships, with access to reliable suppliers and installers should be encouraged. Targets for delivery should be defined, with achievable milestones. Local authorities, housing associations and ALMOs should lead street-by-street refurbishment initiatives to reduce costs and ensure consistency. Improved skills and accreditation Raise the skill levels, particularly for smaller building contractors. There needs to be a co-ordinated approach, creating links with training providers at all levels to increase the skills capacity needed to deliver innovative solutions. There is a role for trade bodies to give accreditation to contractors and ensure that work is carried out properly. This will improve consumer confidence. A local focus A recognition of differences between regions and devolved nations. Regulations and standards should reflect this and solutions should be based on local building types and materials, as well as local character. There should be a reliance on local contractors to deliver work whenever possible. Local networks should be used to introduce change, mobilise businesses and leverage funding. Practical and achievable solutions Focus on relatively simple quick-wins such as cavity wall insulation. Easy-to-use, low-tech solutions should be promoted to end-users, and a project-by-project approach to refurbishment advocated to consumers put off by the cost of the whole-house approach. Improved funding streams Clearer funding mechanisms and incentives need to improve the case for companies and housholders to invest in R&D and energy-efficient solutions. These could be linked to incentives such as reduced VAT and reduced council tax or stamp duty. There is also scope to bring energy providers and personal finance together and to investigate opportunities for gear funding.

What key things should be taken into account when developing the national refurbishment strategy?
A joined-up approach A more coordinated and collaborative approach to refurbishment, with more defined goals and a clearer understanding of desired outcomes. Develop a collaborative multi-disciplinary network to understand the solutions and regional approaches. Joined-up thinking will to find national and regional solutions to skills and training and other areas that threaten a successful national refurbishment drive. Knowledge and evidence Refurbishment guidance and advice should be based on robust evidence. There needs to be a central source for performance data from different demonstration projects around the country. This will allow the sector to see which products and solutions work, how best they should be used and any risks associated with their use. This will enable reliable information such as best practice guides to be produced, manufacturers to identify possible gaps in the market, and industry to develop practical codes. Shape government policy Government should be encouraged to develop clear and consistent legislation, regulation, standards and incentives, with strong cross party support. Then encourage government to stick to policy. Standards and codes Clear standards for refurbishment, building on proven national standards such BREEAM, which recognises that there is not a one-size-fits-all approach to green retrofit,

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Effective communication and engagement Better engagement with the supply chain and consumers about the benefits of green refurbishment. More practical, step-by-step processes and product guides, available at point-of-sale outlets to increase knowledge and confidence. Communication should be targeted to fit the different audiences, with the emphasis on financial benefits and comfort rather than climate change. Consumers should be told about what they can do to improve their buildings with little or no money. Good examples of refurbishment should be used to excite the publics imagination.

There is still a desire for a single place where reliable performance data can be accessed to inform investment decisions. There is also a desire for refurbishment standards to be developed, including a refurbishment equivalent of the Code for Sustainable Homes and creating better links between industry and training providers to increase the skills capacity needed to deliver innovative solutions in occupied property. Above all there is a strong recognition among participants in all the workshops that industry needs to grasp the easy wins such as cavity wall insulation first, in order to meet the targets. This pragmatism extends to a recognition that easy-to-use and easy-to-install solutions will provide the greatest initial gains. Participants in all the workshops understood the challenges presented by a lack of finance and strained household budgets. Incentivising people to invest in energy efficiency whether through tax rebates, lower VAT, attractive loans is seen as critical to kick-starting the market, which might in turn create a stronger business case for companies to invest time and money to developing new solutions. However, underpinning all this is a need to better communicate the benefits of making buildings more energy-efficient as a business opportunity for contractors and as a way to reduce bills and emissions for occupiers.

Conclusion
Since participants at the 2010 workshops raised concerns about the lack of clear leadership training and funding, green refurbishment has become fixed item on the energy-efficiency agenda of both policymakers and business. In the past two years the government has launched its tariff schemes and is implementing its Green Deal loan initiative in all the devolved nations bar Northern Ireland. More specialised training courses are now being offered for trades and retrofit has even started reaching the pages of the national press. Nevertheless, the concerns and aspirations expressed in all the workshops remain valid and are broadly consistent throughout the devolved nations. Chief among these is still the desire for a more co-ordinated approach within industry; better access to useful data about the solutions that work for different building types and more up-skilling of the workforce. And despite an increased focus on green refurbishment by government, there still remains a concern about a lack of leadership in terms of the creation of standards; driving forward greater public understanding and engagement with energy-efficiency; and creating incentives for people to invest in solutions and industry to invest in R&D. Delivering refurbishment on a national scale Participants in all the workshops had a clear idea of what would help a national delivery of refurbishment. Critical to efficient delivery, is still the need for data about what energy-efficiency measures actually work for different building types in different in different parts of the UK.

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National Refurbishment Centre


Supporting a joined-up approach backed up by robust performance data and strengthened by collaborative practical problem-solving.

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Our activities

The National Refurbishment Centre (NRC) is a joint initiative between BRE, the Energy Saving Trust and partners to provide evidence and knowledge that supports the mass delivery of green refurbishment. The NRC is providing this evidence through a national demonstration network of over 500 refurbishment exemplars, one of the largest of its kind in the UK. The analysis of the data aims to provide critical insight for both industry and government in the areas of refurbishment solutions and skills. To foster knowledge sharing, the NRC is also building up an online library of best practice guides and resources on all aspects of green refurbishment and retrofit, as well as providing information on events and seminars.

A partnership organisation

Our goals
Provide the data needed by industry to make evidence-based decisions and aid policy development. Act as a forum for the industry to set the refurbishment agenda and support delivery. Support R&D and offer clear routes to market for private-sector partners for innovation, new materials and technologies. Act as a one-stop-shop for those seeking sustainable refurbishment solutions, providing them with data, guides, and advice. Disseminate national best practice and standardised design solutions. Inform the training and skills sector for development of small and medium sized building contractors who are the backbone of the refurbishment sector. To foster collaboration in a competitive industry.

The National Refurbishment Centre is aimed at industry, driven by industry and funded by industry. Its partners represent a cross-section of industry and include manufacturers, energy providers, main contractors, housing associations, professional organisations, research bodies, training providers and retailers. It is a highly collaborative organisation, with the partners attending quarterly steering group meetings led by an independent chairman. The leading partners are BRE and the Energy Saving Trust. The two organisations have a well-established history of working together, with complementary skills and expertise. They both have a UK-wide delivery infrastructure and leading data and knowledge insight, with robust accreditation and performance monitoring protocols.

Gathering the evidence

The National Refurbishment Centres primary goal is to help support a step-change in the national delivery of sustainable refurbishment by providing industry stakeholders with data driven energy-efficiency measures. When the Department of Environment and Climate Change called for evidence to help it develop the Green Deal proposal, the NRC provided it with data from over 500 refurbishment exemplar projects. The information included the age and details of house-types, key

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refurbishment measures, cost of interventions, overall energy performance data and lessons learned. This kind of information is being made available to the public and the NRC is also able to overlay additional sources of information to carry out deeper analysis of the data to really understand the true efficiencies and costs of different energy-efficiency measures where required. Benefits from gathering data A study into solutions and skills, using data from the Refurbishment Portal and elsewhere, highlights the importance of having a large data-set to draw upon. When the Refurbishment Portal was first launched in June 2011, the cost of achieving an 80% reduction in CO2 was estimated to be around 36,000 for a home. The study found that while economies of scale are expected to reduce costs in the long term, the lack of readiness of the supply chain and the workforce to deliver refurbishment could mean the costs of these works actually goes up. This understanding will help inform industry of the need to tool up for large scale delivery, and provide the correct skills to deliver. Reviewing BREs Victorian Terrace refurbishment project, the study also gained valuable insights into where wastage of time and materials can occur. It revealed, for example, that 15% of all man-hours spent on the refurbishment of the hard-to-treat building, was found to have no added value. Using BREs site efficiency tool CALIBRE, the amount of time spent on different activities could be accurately broken down to find ways of improving efficiencies in the refurbishment process. While a lot of site time was spent making repairs to the structure and fitting insulation, a great deal of time was also spent non-productively on changes to the specification and delays through receiving non-FSC timber and poor buildability of products to suit a refurbishment environment. Lessons learned from projects such as these will mean ensuring the provenance of supplies, and developing rapid retrofit measures will reduce time and materials needed to complete the work.

The Refurbishment Portal is a searchable database, allowing users to search for refurbishment case studies. Each case study includes an overview project description, with details of measures and performance data. It is available to all via www.rethinkingrefurbishment.com.

Raising awareness

The NRC regularly speaks at seminars, workshops and conferences to raise awareness of issues around sustainable refurbishment and retrofit. At Ecobuild 2012, for example, representatives chaired panel discussion seminars on refurbishing hard-to-treat homes, smart metering and the importance of sharing best practice. It has also been featured in The Daily Telegraph, and contributed articles for the trade press and journals, including RICS Residential Property Journal. Hosting events Among the different workshops and events that the NRC has been involved with, is the annual INSITE event, which in 2011 focused on retrofit and which the National Refurbishment Centre sponsored. A key destination was the Reality Zone exhibition, which featured refurbishment case studies from its National Refurbishment Centre partners. The exhibition also included briefing sessions on different retrofit issues, including briefings on the Green Deal, trigger points for domestic refurbishments and sustainable office refurbishments.

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Invest in Innovative Refurbishment The NRC also co-hosted a workshop with the Modern Built Environment Knowledge Transfer Network ahead of the Technology Strategy Boards Invest in Innovative refurbishment competition in April 2012. Architects, suppliers, installers, universities and others members of the retrofit community were able to learn more about the government competition and network ahead of the 10M three-year government-funded competition for the non-domestic market. The day-long event featured a programme of presentations from the Department of the Environment, the Technology Strategy Board, Arup and the Modern Built Environment KTN.

What next?
This report has attempted to describe the refurbishment challenge and opportunities for the UK. With the exception of Northern Ireland, the introduction of the Green Deal finance scheme represents a critical moment if we are to meet the challenges set out at an international level with regard to our existing building stock. But it must be remembered that building maintenance and refurbishment has always represented a multi-billion pound segment of the construction sector. The NRC will continue to respond to the needs of the sector identified in our extensive consultation and relationship with our partners. Our core activities going forward will be to: maintain our work gathering the data and intelligence that industry needs. develop and deliver collaborative research relevant to the needs of the sector. foster coordinated and collaborative work on green refurbishment.

A voice for industry

The NRC provides a useful platform for industry stakeholders to connect with government. In January 2012, for example, National Refurbishment Centre partners met with a representative of the Department of Environment & Climate Change (DECC) team developing the Green Deal. During a round table workshop, DECC clarified particular elements of the Green Deal consultation document and partners identified risks, barriers and opportunities, and provided evidence for a need for an area based approach to carbon reductions.

For more information about NRC activities and to use the Refurbishment Portal go to: www.rethinkingrefurbishment.com

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Appendix
Feedback from the England, Wales, Scotland and Northern Ireland workshops.

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England Workshops
In 2010 nine workshops held in in Birmingham, London, Newcastle, Manchester, Loughborough, Bristol and Leeds, collecting the views of more than 30 professionals.

What opportunities do these drivers bring to you and your sector?


Doing the right thing An opportunity for the construction industry to be seen as a force for good, offering companies the chance to become part of the new green economy.

What are the drivers for reducing CO2 in existing buildings through refurbishment?
Regulation/ Legislation Major government initiatives such as the Green Deal, guided by the Climate Change Act (2008). To a lesser extent, Building Regulations Part L and improving EPC ratings as part of the EUs Energy Performance of Buildings Directive. Locally-focused targets, such National Indicator NI 186 (CO2 emissions reduction in Local Authority areas), and locally-derived targets.

Improving buildings Extending the lifetime of existing buildings and increasing both their sustainability and market values.

Improving the sense of place Embrace the cultural value of existing building stock as there are opportunities to improve the character of whole townscapes, with beneficial impacts for all.

Reducing fuel bills, increasing wellbeing Increase peoples disposable income by helping to reduce fuel bills, while increasing well-being. Improve both the health of occupants and their ability to work by refurbishing cold and damp buildings.

Eradicating fuel poverty, improving health Tackle fuel poverty among vulnerable sections of society. Make buildings healthier places to live to reduce costs to the NHS and wider public sector. Meeting expectations for a higher living standards People need comfortable yet affordable homes, and existing buildings need to be refurbished because they are unlikely to be replaced.

Expand markets Expand markets for existing products. Create and expand markets for innovative new technologies and processes with uptake fuelling further innovation in a virtuous circle.

Increase job prospects Increase employment opportunities in the construction industry and create entirely new skills by refurbishing thousands of buildings every year.

Economic factors Fuel bills are rising and poverty becoming more widespread because of increased worldwide energy demand. Need to grow economy by boosting technological innovation, creating jobs and supply chains for new UK and overseas markets.

Raise skills Create a new skills market, where organisations partner with educational providers to develop qualifications that enable SME builders to benefit from market growth. Skills and training certification scheme for refurbishment to ensure quality/customer confidence.

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Public sector investment Attract investment from the wider public sector where it might draw benefit from refurbishments. For example, NHS could invest in healthier buildings if it is shown that they can expect to save on treatment of individuals in the longer term.

Training tends to focus on whether the job is being carried out properly rather than whether the right job is being carried out in the first place.

Unwillingness to change Parts of construction industry is resistant to change and businesses unwilling to give up potential competitive advantage. Local refurbishment markets may currently be too fragmented to enable change and small building contractors may be unwilling to oversell their services in a highly competitive market. Lack of awareness and buy-in from domestic and commercial end users might result in an unwillingness to go out on a limb with green refurbishment. Homeowners do not understand the benefits and are afraid of the cost and disruption of refurbishment projects.

Green finance Influence government funding mechanisms such as FiTS and the Renewable Heat Incentive (RHI). Financial services deliver innovative green finance, so that people earn money from micro-renewables and increase property values.

What are the barriers to delivering these opportunities?


Reduced government funding Private sector must fill the gap left by a strained public purse but many businesses lack confidence to invest without clear government backing and support from banks,. Government incentives are insufficient routes to the funding remain unclear.

No clear communication or guidance Lack of clear, consistent information. The audience made up of homeowners, social and private landlords and building professionals is disparate and existing information often conflicting. The lack of best practice guides hinders the industry in delivering green refurbishment solutions. The lack of clear communication about the benefits of green refurbishment prevents the mobilisation of the wider public. Much of the guidance that does exist is only available online putting it out of reach of smaller building contractors, who tend not to use the internet.

Poor regulatory frameworks Leadership by government is weak. A lack of national refurbishment standards or clear targets for existing buildings within Building Regulations Part L make it harder for industry to deliver effective solutions. The definitions of green refurbishment and low carbon buildings are too imprecise.

Lack of a strong business case and too much risk A weak business case for green refurbishment. For example, those paying for refurbishment, such as housing associations, may not be the direct beneficiaries of reduced energy bills. Pay-back times for most larger renewable measures is be too long, while some products and processes might actually have poor CO2-saving/payback ratios.

Lack of skills and knowledge Skills shortage and the unpreparedness of national and local supply chains to deliver innovative refurbishment. Builders lack the confidence to sell new technologies and homeowners often distrust their ability to do a good job.

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High cost of new materials and developing new products will be prohibitive for some businesses. Conflict between initial capital cost and long-term cost, with innovation often driven out to reduce capital investment. Compared with new build, refurbishment is seen as carrying a high risks, which are often borne disproportionately by very small sub-contractors. Insufficient or slow returns on investment for manufacturers plus increased costs due to VAT increases.

How do we remove the barriers and deliver low carbon buildings?


Create clearer routes to funding In addition to FiTs, RHI and Green Deal, reduce VAT, stamp duty or council tax, with EPCs directly linked with council tax bands in order to further incentivise owner-occupiers. Offer interest-free loans with long pay-back periods or loans that are paid back on the sale of the home. Offer lower-rate green mortgages, and extending the boiler scrapping scheme. Reduced costs through more community funding for whole-street, rather than house-by-house refurbishment programmes. In general, clearer direction from funding bodies and for funds to be ring-fenced.

Complexity of green refurbishment Additional costs and disruption associated with refurbishment projects. For example, decanting residents can account for half the cost of social housing refurbishment. Homeowners can be put off by refurbishing a whole house and daunted by the number of possible solutions. Previously unknown structural problems, and other hidden horrors such as asbestos and dry rot, can complicate estimation of costs. Old (Listed) buildings are particularly challenging. The complexity of exterior wall insulation is not properly understood and that work undertaken by individuals could lead to planning and party-wall regulation infringements.

Stronger leadership and regulation Greater clarity of purpose and strategic thinking from government, including more realistic targets and clearer definitions of green refurbishment. Building Regulations should be developed to make green refurbishment the norm (possibly including embodied carbon as a value in Part L), with certification for quality-accredited buildings. More stringent and enforceable law, including compliance with Part L, and tighter regulation on what manufacturers can claim. Stakeholder groups need to be more pro-active about influencing policy and standards development. Councils to facilitate a volume refurbishment in both social and private housing, as they understand the local building stock. More public buildings could become refurbishment exemplars, with more co-ordination of the different projects.

New technology Route to market for new technology is often delayed by the accreditation process, and industry can be slow in adopting new products. End-users may be put off by real or perceived complexity of new technologies, which are used incorrectly or not at all, leading to no benefit gains.

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Provide better training More regional green skills training so that local workforces, familiar with local building types, gain the appropriate skills. Specialist refurbishment-related skills accreditation (e.g. part of the CSC scheme or an insulation contractors equivalent to the Microgeneration Certification Scheme) to raise consumers confidence. Embed sustainable refurbishment in the continuing professional development (CPD) of building professionals, especially architects. Raise profile of building engineers who specialise in building technology, so that more young people will consider it as a career.

Use celebrities to endorse and promote green refurbishment agenda.

More effective communication Clearer and stronger messages about the benefits of green refurbishment, focusing on lower energy bills and increased comfort given rather than climate change. Fit information to audience needs, with communication campaigns for homeowners, private and social housing landlords, business and building professionals. Free, impartial advice that is easily accessible from local authorities and independent bodies. Distribute comparison-based green refurbishment information through DIY retailers and builders merchants to improve take-up by consumers and small building contractors. This would help tap into traditional trigger points such as installing a new heating system or repairing a roof.

Building consumer confidence Trade associations should play a key role in raising consumer confidence. Trusted contractor schemes or installer networks, endorsed by trade bodies, could include site visits. Other independent inspection and quality control mechanisms could be developed, with insurancebacked guarantees and warrantees to further strengthen confidence.

Simplify refurbishment innovations Develop more easy to use products, which dont require specialist skills to install. Provide clearer user instructions to reduce complexity of some technologies. A greater role for surveyors to give owner-occupiers independent advice about specific solutions, and how refurbishment projects can be phased. Local Authorities work with providers to provide local communities with optimum external wall insulation solutions within street-by-street installations. This will help spread costs, help with differences in zoning, u-values and possible infringements of party wall legislation, which can arise when individuals undertake their own insulation projects.

Increase knowledge transfer Greater co-ordination of existing refurbishment exemplar projects so that lessons learned reach the widest audience. In particular, more information needed about the benefits of each technology for the end user so it can identify robust mass retrofit solutions.

Changing behaviour Promote energy-efficient buildings at every level, from schools to the mass media. Learn lessons from success of the double glazing sector, which engaged the public and created a market demand that changed consumer behaviour. Convince public that green refurbishment will positively transform a communitys character and raise house prices.

Create a stable market environment More stability for manufacturers to deliver mass retrofit. Integrate supply chain to drive down costs and develop industrialised solutions to deliver at scale.

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Enhance delivery by replacing individual consultants and contractors with more integrated solution providers. A clear brief of the required solutions so manufacturers can develop the right products and a payback incentive to get 50 per cent of savings. Project insurance to help to overcome risk transfer, and consolidate demand from local authorities, housing associations and arms-length management organisations to create an initial mass-market. technology, urgently needs to be raised so that more young people will consider it as a career.

National standards and codes The sector should lead in the use and creation of clear standards for refurbishment, building on proven national standards such as BREEAM. Standard solutions developed for individual elements, with ratings for different products and systems. The National Refurbishment Centre could become the organisation that co-ordinates the creation of refurbishment standards, inspects refurbishment work and provides quality mark.

Improved skills and accreditation Raise the skill levels, particularly for smaller building contractors. A co-ordinated approach, which creates links with training providers at all levels to increase the skills capacity needed to deliver innovative solutions. There is a role for trade bodies to give accreditation to contractors and ensure that work is carried out properly. This will improve consumer confidence.

What key things should be taken into account when developing the national refurbishment strategy?
A joined-up approach A more coordinated and collaborative approach, with more defined goals and a clearer understanding of desired outcomes. A single source of reliable information and advice on different retrofit solutions, legislation, codes, best practice, funding and green finance. A single voice that can bring organisations together, influence government policy and shape the refurbishment agenda. Joined-up thinking will help the sector find national and regional solutions to skills and training and other areas that threaten a successful national refurbishment drive.

A regional focus Within a national drive there should be recognition of regional differences. Solutions should be based on local building types and materials, with a reliance on local contractors to deliver work wherever possible. Local networks should be used to introduce change, mobilise businesses and leverage funding.

Practical and achievable solutions Keep in mind the relatively simple solutions, such as cavity wall insulation, which are quick wins. Easy-to-use, low-tech solutions should be promoted to end-users, and a project-by-project approach to refurbishment advocated to consumers put off by the cost of the whole-house approach. Local authorities, housing associations and armslength management organisations should work more closely with suppliers to offer residents a street-bystreet approach to refurbishment, to reduce costs and ensure consistency.

Knowledge and evidence Refurbishment guidance and advice based on robust evidence. A central source for performance data from different demonstration projects to show which solutions work, how best they should be used and any associated risks. This will enable the production of best practice guides; manufacturers to identify possible gaps in the market; and industry to develop practical codes.

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Improved funding streams Develop clearer funding mechanisms and incentives to improve the business case for manufacturers and suppliers to enter the green refurbishment market, and for consumers to invest in new technology. Incentives should include VAT and other tax reductions or reduced council tax or stamp duty. Bring energy providers and personal finance together and investigate opportunities for gear funding.

Effective communication and engagement Better engagement with the supply chain and consumers about the benefits of green refurbishment. More practical, step-by-step processes and product guides, available at retail outlets to help to increase knowledge and confidence. More targeted communication for different audiences, with the emphasis on financial benefits and comfort rather than climate change. Consumer information about what they can do to improve their buildings with little or no money. Good examples of refurbishment should be used to excite the publics imagination.

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Wales Workshop
At the beginning of 2011 a workshop was held at the Energy Saving Trusts Cardiff office, with participants from across the sector.

Skills Increase collaborative working between sectors as well as raising awareness, while creating skilled and diverse workforce.

Heritage Focus on refurbishing pre-1919 buildings to ensure the preservation and maintenance of heritage and Welsh vernacular buildings.

What are the drivers for reducing CO2 in existing buildings through refurbishment?
Legislation Policies and legislation set by the Welsh Assembly Government (WAG), including annual targets for reducing carbon emissions. Improve the many old and poorly performing buildings in order for the government to meet its carbon reduction targets and improve the quality of life for occupants. Fuel poverty on the back of rising energy bills and the need to improve the comfort households. Rising unemployment and the need for economic regeneration. The need to protect the local heritage and identity, particularly of rural communities. The need to increase public awareness about benefits of energy efficiency to help meet CO2 reduction targets.

Community Foster community working and local regeneration and also local peoples sense of space, wellbeing and happiness by giving them the chance to remain in their home.

Quality of existing stock

Awareness Change wider public awareness of sustainability issues and drive behavioural change with the help of things like occupier incentives.

Fuel Poverty

What are the barriers to delivering these opportunities?


Lack of defined business case Contractors do not currently see benefits of up-skilling, with some resistance from the private sector because of a lack of a clear business plan. Policies possibly being diluted, with the danger of confusion which that might lead to. Co-ordination poor among decision makers, with conflicting priorities in planning. Lack of authoritative information leads to individual interpretations. Trades lack of technical understanding of sustainability issues and do not have access to cheap local training. Question over levels of people resources and the timescales needed to deliver large-scale refurbishment projects.

Economy

Identity

Lack of leadership

Awareness

What opportunities do these drivers bring to you and your sector?


Economy Create new jobs, including apprenticeships, and help existing contractors develop their businesses. Energise the existing supply-chain and improve Wales manufacturing base.

Lack of skills

Resources and logistics

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Problems associated with relocating residents during refurbishment projects. Issues of lead-in time and continuity in terms of implementation and delivery. Going too fast might lead to mistakes.

different solutions and achieve different results. Experienced and reliable professionals will ensure the best carbon-reduction advice is given and projects delivered on time and on budget. There is a need for private/public finance initiatives.

Funding Funding during challenging economic times, in which public sector money cannot be relied upon. No real understanding about how to maximise savings from low carbon living.

Training Invest in and develop specialised refurbishment training and qualifications critical to the success of mass-scale refurbishment. Funding should be prioritised towards training providers who would train new entrants and upskill existing trades and companies.

Effect on the market Making existing buildings more energy efficient might create a two-tier market, especially for non-domestic buildings.

Education and awareness An awareness drive aimed at local authorities, including chief executives, through to Building Control and planning officers. Awareness dives to change public and sector perceptions, backed up by demonstration projects, the exchange of best-practice information and the sharing of information and results, both good and bad. Information targeted at different levels to suit clients, contractors, and the public.

Lack of evidence Lack of measurement and evidence of the actual benefits measures against theoretical benefits, including the cost of achieving carbon reduction.

How do we remove the barriers and deliver low carbon buildings?


Better leadership Improved co-ordination and direction, especially between public sector bodies, would help improve consistency in refurbishment delivery. Strong, consistent lead from government backed up by good information and evidence will help the industry in its decision-making.

What key things should be taken into account when developing the national refurbishment strategy?
Use Welsh data and be mindful of the differences in the built environment of Wales, while avoiding duplication and re-inventing the wheel. Link up with the Wales Zero Carbon Hub, which is leading the low carbon agenda for the built environment is being led by the Wales Zero Carbon Hub, to support monitoring and evaluation of sustainable refurbishment measures.

Research and development Encourage innovation in products and techniques and research into delivery processes to help volume delivery of refurbishment.

Innovative delivery A pragmatic approach to delivery, including an acknowledgment that different schemes need

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Scotland Workshop

Economic growth and skills Stimulate economy to create employment and protect construction skills. Reduce the heating and ventilation costs for businesses. Meet skills standards from awarding bodies.

In November 2011 the National Refurbishment Centre led a workshop at Glasgow Caledonian University, collecting the views of more than 25 professionals.

What are the drivers for reducing CO2 in existing buildings through refurbishment?
Poor housing Poor thermal comfort and living standards for those living in homes with poorly maintained building fabric. Challenge posed by the half a million solid wall homes found mostly in rural areas plus the large number of tenements reaching the end of their lives. Housing stock that not always designed for the Scottish climate.

Environment Provide solutions to reduce energy cost in buildings and introduce new methods of construction. Climate change; Avoid demolition (negative impacts); Many existing buildings are good places to live - both in location and house design/style. Retain existing infrastructure; Reduce carbon emissions; replacing existing buildings is more carbon intensive than repair/refurbishment.

Solutions Provide solutions to reduce energy cost in buildings and introduce new methods of construction. Improving building materials and developing measures for hard to treat homes.

Regulations and legislation Government regulation/ legislation such as Building Regulations, the Climate Change Act and Scottish Housing Quality Standards is driving change in construction practice.

Energy security and combating fuel poverty Rising energy prices from increased world demand. Fuel poverty from rising bills and poorly insulated houses. Depleting fossil fuels, peak oil and the need for a contingency. Changing attitudes to consumption.

What opportunities do these drivers bring to you and your sector?


Increase growth, sales and profit A chance to diversify into a new market, with new products and services. Improve and increase sales and profitability, including volume sales and the ability to charge fees for expertise Opportunities for architects to work with existing housing stock and develop new approaches. Alternative to demolition. More engagement between industry and researchers/ academics to develop a knowledge base.

Preservation of built heritage Prevent building dilapidation and conserve built heritage, including the retention of architecturally important buildings. Tackle the stigma of tower blocks and 1960s housing. Create places that are loved to improve quality of life.

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Plan for growth, including the development of new products, including those resulting from collaboration.

Improve materials industry.

Social and personal benefits Help households reduce energy bills through generation of their own energy. Give householders access to knowledge and experience that helps them improve their homes and living conditions. Improve the health of the population. Happier and healthier housing tenants also means better customer care. Create homes that are adaptable to life changes, such as caring for elderly relatives. Help housing associations plan for a growing population.

Boost community engagement and cohesion Increase interest in co-operative/ community approaches such as district heating and a wider appreciation of the built environment in general. Improve identity of community and place, including an understanding of the built heritage.

Improve employment and training Further and higher education providers to meet the training requirements of a changing industry and develop courses, on low carbon technologies and installation. Retain and grow secure employment, including sustained local jobs. Opportunities for architects to learn about the use of existing buildings Train new entrants to the industry, including apprenticeships and educate existing personnel on new technology/methods of construction.

Improve standards of practice Review all current standards to create joined-up thinking and reduce costs. What are the barriers to delivering these opportunities?

Technical innovation Drive up the thermal performance of building stock. Use knowledge of how buildings work to research and develop innovative solutions. Develop innovative energy-saving solutions. Define the place of renewables within refurbishment to help companies develop that side of their businesses.

What are the barriers to delivering these opportunities?


Lack of knowledge Retrofit is still a specialist area and the general public needs to be better educated through trusted organisations. Information is not shared effectively so that mistakes are repeated. A lack of understanding about design and product performance, including the best measures for different building types. Most householders and contractors dislike changing habits without financial incentives. A fear of cowboy builders puts people off investing in new solutions.

Benefit to Scotland Plc Increase value of Scottish assets. Increase economic development through lo- carbon economy, while reducing emissions. Kick-start construction industry to support national and local economic growth. Reduce reliance on fossil fuel.

Unwillingness to change or adopt new approaches

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Lack of clear policy direction Lack of long-term vision makes business investment and planning difficult. UK government policy does not always take into account regional variations. Changing and inconsistent government policy produces uncertainty. Negative attitude from planners and slow-moving planning legislation. Lack of joined-up thinking in local and national government over policy. Lack of positive messages to businesses. No single government department giving comprehensive guidance to industry. Legislation and standards not onerous enough, with more long-term political vision needed for the policing of targets.

Tendering for refurbishment projects can be complex and costly. Sustaining adequate cash flow; Lack of grants. Decanting residents from buildings during refurbishment projects. Variety of different housing stock and the variety of tenure, especially within tenements. How do we remove the barriers and deliver low carbon buildings?

The complexity of retrofit

How do we remove the barriers and deliver low carbon buildings?


Better delivery Introduce penalties and a transparent process to ensure refurbishment requirements are actually met. Create economies of scale through community partnerships and partnerships between housing associations and other building owners. Provide incentives to raise standards. Create a database of approved solutions for different building types.

Funding and investment Limited finance available for the initial cost of refurbishment and risk of developing products. Creating economy of scale to help drive down the cost of retrofit measures. Cost and risk; less attractive work (for architects) Limited public funding and grant opportunities for training and research investment. Lack of investment from industry partners to facilitate teaching and learning. Lack of drive from Qualification bodies. The benefits of spending on refurb, including the basic cost of insulation materials, are not always obvious it is often easier to say demolish and rebuild. Economic viability of retrofitting is unproven, and sustaining adequate cash-flow is difficult. Buyers focus on price.

Improve knowledge about technical solutions Learn from exemplars and disseminate research findings about the best methods for refurbishing different buildings. Develop a methodology for comparing materials. Increase government grants to make new technologies more affordable and encourage innovation through incentives, such as VAT. Standardise product data. Simplify rules/regulations.

The business case

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Improve public awareness Raise public awareness of benefits of refurbishment through a media campaign and sharing information about successful projects to educate. Provide easily accessible advice and support to home owners, Use media to educate public. Set a prerequisite that all funded programmes provide ongoing feedback and data to a single national database. Promote different retrofit solutions.

Invest in scholarships. Encourage community partnership schemes between residents, local authorities and industry. Mass skills training and more collaborative working between trades. Streamline existing sources of funding and make more transparent. Create an innovation fund. Funding for all homes, regardless of their current condition.

Improve routes to funding

Clearer policy, legislation and regulation Government should set out a roadmap for new policies and programmes, with a minimum timescale that these will be in place. Legislation should be fast tracked. Clear thermal refurbishment standards should be created to help the UK meet 80% carbon reduction target. To ensure business and consumer confidence, government should create long-term policies that do not change. Legislation and regulation should be enforced. Government should introduce financial incentives such as the removal of VAT from thermal refurbishment and council tax reductions. Government should encourage community-led initiatives for improving multiple housing by providing education, funding and skills development. Relax planning for historic buildings. Regulation to ensure that homes are upgraded before they are sold.

What key things should be taken into account when developing the national refurbishment strategy?
Public awareness Raise general public awareness of the benefits, motivating householders and focusing on what is achievable and affordable. Highlight the benefit balanced with the cost of refurbishment. Work collaboratively to fill gaps in knowledge; Promote refurbishment as a part of sustainable life

Government Persuade government to stick with incentives to invest in energy efficiency. Encourage government to issue clear and consistent legislation, regulation and standards that have crossparty support. Encourage government to take into account regional variations. Lobby for refurbishment-related legislation and make government aware of the limited funds within the private sector.

Improve training delivery Increase partnerships between industry, training establishments and regulators in order to provide relevant, practical training for new entrants and existing workforce.

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Encourage government to invest in scholarships to replace apprenticeships.

Northern Ireland
In February 2012, a workshop held iat the University of Ulster, collecting the views of more than 14 professionals.

Delivery Encourage public/private partnerships, collaboration and access to reliable suppliers and installers. Help develop minimum standards and a code for sustainable refurbishment Define targets for delivery, including achievable milestones and barriers that can be overcome and splitting the timeline into smaller targets.

What are the drivers for reducing CO2 in existing buildings through refurbishment?
Fuel poverty and energy security Rising running costs and energy bills for homes and businesses. Future availability of fossil fuels.

Knowledge Where possible, highlight clear, simple refurbishment solutions, which can be used by builders now. Also highlight flexible solutions that can be adapted to different building types. Identify useful sources of information and create support material for education providers. Work with design teams on existing projects. Provide useable reference data and comprehensive project information on past projects/research including projects that reflect local build/material types.

Embodied carbon Reducing embodied carbon in construction.

Doing the right thing Increasing expectation of social responsibility within the corporate and social spheres.

Legislative challenges International and national 80 per cent carbon reduction targets for 2050. EU Energy Performance of Buildings Directive (EPBD). Building Regulations for extensions and consequential improvements.

Quality of Life Meet expectations for better standards of living space and comfort.

What opportunities do these drivers bring to you and your sector?


New markets and technology Opens up a new market for construction companies. Increased demand and sales for existing products and new renewable technologies. Creation of a new green industry.

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Improve built heritage Greater comfort for those living n historic buildings. Bring greater value to heritage buildings, preserving the inheritance of future generations.

Research and best practice Carry out research that supports local solutions. Provide evidence-based advice and generate new knowledge about the energy-efficiency measure and their installation. Build bridges between academia and industry and apply new research. Encourage the development of new technologies. Promote best practice guidance and Develop Community Evaluation Northern Irelands profile.

Improve health Improving existing housing stock to create healthier buildings for individuals and communities.

More jobs Provide job security for existing workforce. Increase employment for new entrants.

Improve home finances Help households save money and increasing disposable income.

What are the barriers to delivering these opportunities?


Behaviour change Changing peoples attitudes and habits. General inertia and slow take-up from consumers. Need to make renewable technology understandable for everyone. Lack of public awareness and buy-in can constrain effective political motivation.

Social responsibility Reduce fuel poverty for tenants. Reduce CO2 to help meet company CSR initiatives and deliver genuine social as well as economic benefits. Chance for companies to get involved in sustainable development.

Training and knowledge transfer Growth area for colleges to train and up-skill the construction sector workforce, including building services contactors. Identifying and disseminate best practice, including learning from active research. Help individuals to develop their skills and benefit from an increasingly innovative sector. Develop CPD programmes for construction professionals. Advise home owners about how to upgrade their homes economically. To promote environmental and social change by demonstrating leadership in this area.

Funding and costs Current lack of financial fluidity makes progress slow and challenging. Lack of private sector money to invest in research and development government injection required in the form of grants, loans and incentives. Companies unwilling to invest in initial cost outlay against long payback periods. Capital costs to finance improvements a challenge for home owners Scope of work limited by small scale modifications. Renewable technology has higher cost than traditional technology.

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During recession, the cheapest capital expenditure is often king`. Relatively high costs involved in undertaking retrofits compared to newbuild.

How do we remove the barriers and deliver low carbon buildings?


Improve data Accurate and validated data to help reduce risk. Evidence about the most cost-effective measures to create a cultural change. The 80/20 rule - focus on the 20 per cent of measures that achieve 80% of CO2 savings. More accurate SAP modelling for existing buildings. Develop more monitoring programmes to highlight benefits and encourage future investment and create incentives.

Legislation and policies Too much focus on new build housing so need to define in terms of existing stock Need to make renewables a must have. Poor direction, lack of joined-up thinking and lack of impetus in pursuing policy by the Northern Ireland government. Complexity of current schemes. Specifiers and legislators making non-evidence-based decisions.

Improve solutions Industry should demonstrate efficient, cost-effective integrated built environment solutions. Create plug and play solutions to remove complexity and disruption. Develop affordable solutions. Take risks and be bold. Increase sources of equipment and products. Create a virtuous cycle by reducing manufacturing costs to make more solutions more affordable and drive up demand. Architects and consultants incorporate viable products into their designs.

Lack of skills Availability of skilled workforce to undertake retrofit projects. Not enough training providers to educate professionals (CPD) in this field. Lack of product knowledge among installers and users. Finding time to gain new skills.

Risk averse industry and consumers Lack of diligence throughout the industry. Organisations risk averse when it comes to investing in R&D.

Lack of technical knowledge Lack of data and knowledge on retrofit solutions and understanding of the practical difficulties of incorporating new technologies into buildings. Lack of affordable or appropriate products for effective retrofitting. Prior experience preferred to innovative approaches.

Engage government and decision makers Engage government and policy makers with a clear understanding of needs and benefits. Provide decision makers with relevant local data.

Better collaboration More collaboration between research, industry, contractors, landlords to help solve problems.

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Share the risk and share the reward. Actively engage people and communities rather than just educate.

Develop best ways of working together to meet objectives Create a strong multi-disciplinary steering team to deliver objectives.

Improve skills Train new people and up-skill the existing workforce. Train more installers to reduce costs.

Change cultural attitudes Tackle apathy among the general public. Engaging the public in national, regional and local plans to achieve CO2 reductions and address energy security.

Incentivise Low interest rate loans, rate reductions and other incentives for retrofitting homes with green energy technologies. Develop creative pay back schemes for tenants. Allow landlords scope to recoup a proportion of savings from retrofitting buildings.

Data the evidence Assemble good data covering all regions to understand and audit. A database should have non-conflicting retrofit solutions. Understand the condition of existing stock.

Penalise Create tough financial penalties for not meeting targets.

Explore finance options Audit the capacity and capability model. Research financial incentives. Source funding opportunities. Develop innovative funding mechanisms.

Engage and educate Increase consumer awareness of new green products. Provide simplified cost versus benefit information for homeowners. Educate occupants about proper use of technologies to maximise benefits. Government body should provide free tailor made advice. Promote refurbishment for all. What key things should we take into account when developing a National Refurbishment Centre?

Educate Educate homeowners, installers and consultants and professionals. Promote installer training programmes for products. Educate about the consequences of not refurbishing in volume.

Promote innovation Stimulate innovative solutions, including off-the-shelf products. Apply learning from other industries. Prioritise efforts on areas which will deliver most benefit.

Support collaboration Develop collaborative network, share knowledge and disseminate knowledge. Understanding the similarities and differences between different parts of the UK and exploit existing knowledge for benefit of the Northern Ireland market.

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Governance and engagement Establish a National Refurbishment Centre in Northern Ireland to understand local issues and identify key stake holders in Northern Ireland. Help define consistent government policy and take ownership of Northern Irelands Green New Deal. Help foster a united approach between different Northern Ireland bodies NI bodies to create an effective refurb policy and awareness campaign. List objectives and create realistic targets with time scales.

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References
[1] The Climate Change Act (2008) [2] Warming. Climate change the fact, Met Office, 2009 [3] Warming. Climate change the fact, Met Office, 2009 [4] Building the future today, Carbon Trust, 2009 [5] Home Truths: a low carbon strategy to reduce UK housing emissions by 80% by 2050, Brenda Boardman, Oxford University [6] Home economics - cutting carbon and creating jobs, by nation and region, Energy Saving Trust, April 2011 [7] Local authority housing statistics, England: 2010-11: Housing Strategy Statistical Appendix and Business Plan Statistical Appendix, Department of Communities and local government, November 2011 [8] The real cost of poor housing, M Davidson, M Roys, S Nicol, D Ormandy and P Ambrose, BRE, February 2010 [9] Annual report on fuel poverty statistics, Department of Environment and Climate Change 2012, May 2012 [10] Quarterly energy prices table 2.1.3: Retail prices index: fuels components monthly figures, Department of Environment and Climate Change, June 2012 [11] Building a low-carbon economy the UKs contribution to tackling climate change, Committee on Climate Change 2008 [12] Knock it down or do it up? Sustainable housebuilding: New build and refurbishment in the Sustainable Communities Plan, F Plimmer, G Pottinger, S Harris, M Waters and Y Pocock, BRE, October 2008 [13] Meeting Carbon Budgets 3rd Progress Report, Committee on Climate Change June 2011 [14] Trigger points: a convenient truth. Promoting energy efficiency in the home, Energy Saving Trust, February 2011. [15] Output in the Construction Industry, December Q4 2011, Office of National Statistics, February 2012 [16] Home economics - cutting carbon and creating jobs, by nation and region, Energy Saving Trust, April 2011 [17] Building the future, today, Carbon Trust, 2009 [18] Home energy Pay As You Save pilot review - report, Energy Saving Trust, September 2011

National Refurbishment Centre, September 2012 The National Refurbishment Centre BRE, Bucknalls Lane Watford, Herts WD25 9XX www.rethinkingrefurbishment.com

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